Bitcoin’s price has recently reached a high of $52,000 over the course of two years, but it appears to have hit a roadblock. Although it is currently trading below this significant mark, the overall sentiment in the market remains positive. Long-term holders of Bitcoin have been observed to be selling approximately 200,000 BTC from their stash since the beginning of the year. This consistent pattern of selling has been ongoing for almost three months, resulting in a gradual decrease in their balances.
When comparing the current trend to the behavior of long-term holders in past bull markets, there is a noticeable difference in the rate of decrease in Bitcoin holdings. In previous bull markets, holders reduced their BTC balances by around 15%. However, in the present scenario, the decrease is only about 1.5%. This indicates that while long-term holders are still selling some of their Bitcoin, they are doing so at a much slower pace, suggesting a more cautious approach to the current market conditions.
Despite the selling activity by long-term holders, there has been a significant accumulation of Bitcoin by various groups of investors. According to CEO of CryptoQuant, Ki Young Ju, Bitcoin inflows into accumulation addresses have reached an all-time high of 25,300 BTC. These accumulation addresses, characterized by no outgoing transactions, holding large balances of over 10 BTC, and consistent activity over an extended period, suggest a strategic effort by major holders to accumulate Bitcoin in anticipation of future price increases.
Since mid-March 2020, there has been a noticeable decrease in the amount of Bitcoin held on exchanges, signaling a shift in investor behavior. At the peak of Bitcoin’s price surge to $69,000 in November, the amount of Bitcoin held on trading platforms decreased significantly. Glassnode data from 2024 revealed a continual decline in exchange-held Bitcoin, with the percentage of Bitcoin’s supply on exchanges dropping from 12.03% to 11.79% year-to-date. Recently, large holders, known as whales, transferred over 18,000 BTC worth approximately $1 billion from Coinbase to non-exchange addresses, potentially custodial wallets, indicating a movement towards safer storage options.